Unemployed and soaring fees and charges

[Chris2332]

Hi guys,

 

I have lost my job end of January and haven't been able to get a new one yet. I used to work in the financial sector (investment banking) and as you can imagine it’s easier to find gold in Oxford Street than a job.

 

Anyway, I have two accounts (current account and savings account) with HSBC more than 7 years now. Since I have been unemployed I get all my housing benefits and council benefits paid into the current account.

 

Unfortunately I have been unable to pay for my credit card and flexiloan since then. I have tried numerous times to come to an agreement with the bank for an affordable amount per month so I won't need to stop completely the payments, but they do not want to settle at all.

 

On top of that every month they would deduct money from my account to pay the creadit card and flexiloan which resulted in an overdrawn account. Finally they charge me fees and charges for not paying the credit card and the flexiloan, as well as for having an overdrawn account..

 

Even more frustrating is the fact that they know that I will be getting money from the council (benefits) every second Monday. Every second Saturday (before the aforementioned Monday) they deduct money from the account to pay some of the fees and charges leaving me with less than half the money I was supposed to get.

 

This effectively means that by the end of the month I owe more to the bank, and I don’t have money to pay the rent as well as buy food during the month.

 

I am thinking of moving legally against them as I am fed up with them and I don't have any other option since they don't seem to appreciate my needs and my current situation.

 

Not to mention the hundreds of phone calls per week for immediate payments.

 

Can you please advice since I don’t know what to do?

 

Apologies if my English is incorrect and for the long post.

 

Thanks everyone,

Chris,

[what_todo]

the below will help you

 

Social Security Administration Act 1992

Miscellaneous

Certain benefit to be inalienable **

 

187- Subject to the provisions of this Act, every assignment of, or charge on-

(a)benefit as defined in section 122 of the Contributions and Benefits Act;

(b)any income-related benefit; or

©child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

 

** inalienable = not to be forfeited, or not transferable.

 

Basically they can't take your benefit money for overdrafts or debts, and if they have you can ask for it back.

 

from

 

Moneysupermarket.com - Can banks take benefit money for charges?

[Chris2332]

Thank you very much for your reply.

 

I was wondering if there is a template I can use in order to start the legal action against the bank...

[johnnymitch]

I would be inclined to ask the Benefits Office , chris - if they've got a formal complaint form it may carry more weight - but if not come back and we'll see what's available ........

 

Unless anyone out there has a suitable letter ......... ?

[Chris2332]

Cool, I ll try the benefits office and let you know of the outcome.

 

I have a feeling that I will be back here soon to ask for your help to prepare the letter.

 

Thanks,

Chris.

[johnnymitch]

No problem chris ........ happy to help

[Chris2332]

Here I am again!!!

 

I just called the Benefits office, explained them the situation (that the bank is getting my benefits money), they told me that was wrong but they don't have any forms to use to claim the money back.

 

Can you please help me (since English is not my mother tongue) to put together a first letter in order to claim back money?

 

For now I am only interested for the past 3-4 months that I have been unemployed to claim all the benefit money, interest, fees and charges that have been imposed on me.

 

Thanks for your help,

Chris.

[Castlebest]

Hiya Chris this is the thread you need

 

http://www.consumerforums.com/resources/templates-library/48-bank-templates/140-right-of-appropriation-stop-the-bank-from-taking-your-money-

 

pete

[johnnymitch]

Hi chris (and pete)

 

knowing how much notice they take off the Rights of Appropriation notices pete - would you say that , in addition , chris should open a parachute account ?

[Castlebest]

Hi chris (and pete)

 

knowing how much notice they take off the Rights of Appropriation notices pete - would you say that , in addition , chris should open a parachute account ?

 

ALWAYS... get your cash out of the banks reach before they take the roof from over your head and the food from your mouth

 

pete

[johnnymitch]

Thanks pete , I thought that would be best......

Chris , before you move against the bank , open a separate account with a completely different bank for your everyday Income & Expenditure (known as a 'Parachute account') .

Parachute Account

http://www.consumeractiongroup.co.uk/forum/general/13832-do-you-need-parachute.html

This is an account where you shouldn't go overdrawn , but you can use it to pay HSBC what you can afford , It gives you space to work out how much they owe you ,and start to reclaim it, without them playing silly beggars with the money you need to live on .

[Chris2332]

Thanks guys for your comments.

 

I have tried to open another account at another bank but they have rejected the application on the ground that since HSBC keeps charging me interest rate my credit score is so low that I can't open anywhere else an account.

 

I am going to be using the calculator on this link:

 

Bank Charges: Reclaim them, they’re unlawful, inc. free template letters ...

 

in order to see what HSBC owes me since I went unemployed and I need your help in order to put together a letter and start my claim please.

 

Thanks,

Chris.

[johnnymitch]

There are banks on the link I gave you which will take you on, I think Chris - on condition that you don't go overdrawn -

[Chris2332]

Ok John, I will try to get that sorted.

 

In the mean time, is there a template or something that I can start with to write the first letter for claiming the money back?

 

Since Feb they have taken more than £500 from my benefits money.

[Chris2332]

Also my first letter, should this be sent to the Leeds address, to Service Quality Team???

[yourbank]

the below will help you

 

Social Security Administration Act 1992

Miscellaneous

Certain benefit to be inalienable **

 

187- Subject to the provisions of this Act, every assignment of, or charge on-

(a)benefit as defined in section 122 of the Contributions and Benefits Act;

(b)any income-related benefit; or

©child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

 

** inalienable = not to be forfeited, or not transferable.

 

Basically they can't take your benefit money for overdrafts or debts, and if they have you can ask for it back.

 

from

 

Moneysupermarket.com - Can banks take benefit money for charges?

 

Chris, please DO NOT include this as it is unfortunately wrong. Remember under the FSA Waiver you can go back to July 2001 so charges further back can add up to a lot more than you may think right now(unless you had no charges of course)

[Chris2332]

So what are you suggesting, cause I am a bit confused!!!